Lapu-Lapu bleeding P208M in interest
The Lapu-Lapu City government has incurred P115.4 million in interest of the P214million loan spent for the establishment of the City’s Hoopsdome and Jeepney Terminal.
And as if it were not city government. enough, these two facilities Since there were no earned an income of P14.6 lessee occupants, the income million only in the past three from Hoopsdome was purely years of operation. derived from the rentals
These two structures of the court which was set were part of the city’s five at P5,500 per hour and the priority projects financed by income from terminal was the P385.5 million long-term sourced only from parking loan from the Land Bank fees. of the Philippines in 2004, “Had the management which already incurred a pursued the full utilization total accumulated interest of of these facilities in P208 million as of December accordance with its plans, 31, 2017. additional revenue from
Other projects funded rentals of available spaces were the fire station (P46.5 at the Hoopsdome and million), site development for Jeepney Terminal could have commercial complex (P40 contributed to the revenues million) and city drainage and partly compensated system (P85 million). for the amount of interest
The actual costs incurred on the loan,” read of the Hoopsdome and the audit report. the Jeepney Terminal The city government were P192,975,865.96 said there is now a proposed and P20,954,578.14, adjustment in the rental rate respectively. The projects’ which is expected to increase principal objective is to revenues of Hoopsdome. generate more income and to “The unoccupied minimize traffic congestion rentable spaces are in the City’s business district. temporarily used as venues
The Commission on of different sports and as Audit, in its 2017 report, government office just to said the city’s lack of put the same in use,” the determination in pursuing city said. the full operation of the As for the Jeepney revenue-generating projects Terminal, the city claimed according to plans caused its it suffered a setback as the underutilization resulting in terminal’s economic viability foregone revenues that could has been affected by the have lessened the impact of presence of privately-owned borrowing costs incurred stalls offering more or less totaling P115.4 million. the same products as a lower
Both facilities were price. completed and became “Nevertheless, functional in 2009 but management continues to since then both had not look for ways to resolve this yet generated income as concern,” further read the expected. city’s comment.
Accounting records revealed that the actual income generated from Hoopsdome rentals and Jeepney Terminal parking fees for 2015 to 2017 which, according to COA, was considerably below the expected benefits.
As reflected in the Financial Feasibility Analysis for the said period, the expected benefits for Hoopsdome was P213 million but the actual income was just P7.6 million while the expected benefits for Jeepney Terminal was P9.8 million but the actual income was P7 million.
COA found out that the supposed rentable areas at Hoopsdome suitable for commercial or office use were actually utilized as sports facilities, administrative offices and storage or stockroom of the different departments of the
M. Rubio/GAN